- CAPA Analysis
- Schedule Analysis
- Cargo Analysis
- Market Share
- Low Cost Carriers
- Economics & Trade
- Fast Fact Report
- IATA Code
- International Airlines serving this country (excluding codeshares)
The passenger air transportation sector in Russia can be characterised by significant competition. Aeroflot is majority owned by the Russian Government and is the flag carrier and largest airline of the Russian Federation. The three major airports serving Moscow are Sheremetyevo International Airport (SVO), Domodedovo International Airport (DME) and Vnukovo International Airport (VKO). Aeroflot dominates the domestic passenger market in Russia, however other airlines also provide frequent national and international services and they include S7 Airlines, UTair Aviation as well as VIM Airlines and Nordavia. The Federal Agency for Air Transport of Russia is the government agency that is responsible for rendering governmental services and managing governmental property in the sphere of air transport (civil aviation) and the usage of air space over the Russian Federation.
Airports in Russian Federation
72 total articles
The UTair Aviation Group includes both a rotary wing (helicopter) division and a fixed wing (passenger airline) division. UTair's strategic goals for its passenger transportation division include maintaining third position and a market share of at least 10% in the domestic market; and a fleet modernisation programme through the purchase of new short and medium haul aircraft.
The passenger airline UTair Aviation achieved a 19% increase in passenger numbers in the first 11 months of 2016, after a period of capacity and traffic reduction and financial restructuring. The airline carried 5.5 million passengers in 2015, making it Russia's third biggest airline after Aeroflot and S7 Airlines, while the group carried 8.8 million passengers. UTair has orders to replace a significant proportion of its ageing fleet of aircraft (average age 19 years), but delivery dates are currently fluid.
Moscow Vnukovo is UTair's biggest airport, from where it serves mainly the domestic market. It is the biggest single airline by seats at Vnukovo, but it is outranked by the combined capacity of the Aeroflot Group's three airlines at the airport, Aeroflot, Pobeda and Rossiya. It also faces competition from Aeroflot and/or Pobeda on almost all of its biggest routes from Moscow.
Two years on from its Dec-2014 launch Aeroflot's LCC subsidiary Pobeda is firmly established as the fifth largest airline in Russia by seats, with a 6.8% share in the domestic market (week of 19-Dec-2016, source: OAG). Bucking the trend of declining traffic in the Russian market – which is being dragged down by falling international demand – Pobeda is growing rapidly.
Although still strongly domestically focused, the Moscow Vnukovo-based airline commenced international operations in Feb-2016 and will have launched 12 international routes during the course of 2016.
On a city pair basis, 23 of the 41 Pobeda routes in 2016 are not operated by other Aeroflot Group airlines. There are 17 Moscow routes (and one from Saint Petersburg) flown by both Pobeda and Aeroflot from different airports. An important part of the Aeroflot Group's multi-brand strategy, Pobeda is the only LCC in Russia and has stimulated demand among price-sensitive passengers in point-to-point markets.
This report on the Global Airport Development Conference held in Lisbon on 29-Nov to 01-Dec-2016 covers the proceedings of Day 2 of the event.
The Global Airport Development (GAD World) conference was held in Lisbon, between 29-Nov and 01-Dec-2016. This CAPA report chronicles the presentations and debates that took place on the first two days, including selected ‘stream’ sessions on both days.
There was, inevitably, a political overlay to the event, with the (Jun-2016) UK referendum on continuing membership of the European Union (‘Brexit’), the (Nov-2016) election of President Trump in the US and associated ‘uncertainty’ dominating events.
Otherwise, the concern was, as always, the ‘pipeline’ of airport privatisation details, or rather the lack of them, while the hope was for the continuation of the trend towards PPP deals.
Part 1 of CAPA's analysis of the S7 Airlines Group examined its network and competitive positioning, particularly with respect to the Russian market leader Aeroflot Group. Away from its Moscow Domodedovo hub, S7 has pockets of strength serving cities in Asia from regional Russian airports.
This second part of the report on S7 highlights its respectable track record of growth in its operations and profitability since the establishment of its subsidiary Globus in 2008. In 8M2016 its passenger growth rate accelerated to 25%, after a 6% increase in 2015. Although demand for international air travel to/from Russia has slumped due to geopolitical developments, S7 has benefited from growth in the domestic market and from capacity cuts by foreign competitors on international routes. It has also benefited from the 2015 collapse of Transaero (although Aeroflot has gained more from this).
S7 Airlines, together with its subsidiary Globus, achieved a 25% increase in passenger numbers in the first eight months of 2016. Passengers flying the S7 brand totalled 10.6 million in 2015, making it Russia's second biggest airline after Aeroflot (thanks also to the collapse last year of former number two Transaero). This first part of CAPA's report examines S7's current network. A second part will analyse its growth, fleet and financial track record.
Moscow Domodedovo is S7's biggest airport and its main hub for the domestic market, which accounts for around two thirds of its seat capacity. Domodedovo is also its hub for international routes to Europe (mainly Eastern and Central Europe). Although it is the biggest airline at this airport, on a city pair basis on many routes from Moscow there is significant competition from the market leader Aeroflot, whose main hub is Sheremetyevo.
However, S7 also has a noteworthy network to cities in Northeast and Southeast Asia from regional airports elsewhere in Russia, in particular Novosibirsk and Vladivostok. Competition on these Asian routes is much less severe: indeed, S7 is the only operator on the majority of its routes to NE/SE Asia and its position is further boosted by codeshares (including with Aeroflot).